So you want to become a financial adviser? Don’t overlook the little guys.

The financial services industry is suffering from a serious generation gap. While larger firms have the scale and resources to offer national training and internship programs, there are a number of available entry-level positions with small or mid-size firms as well. These positions offer tremendous learning and professional growth opportunities. The U.S. Bureau of Labor Statistics projects that the number of job openings for financial advisers will jump 27 percent, or 60,300 additional jobs, by 2022. This dramatic need for younger financial advisers is attributed to the aging out of many of the current adviser population. According to global research firm Cerulli Associates, 43% of financial advisers are over age 55 and the average age of advisers is just under 51 years.

Why Small and Mid-Size Firms Invest in Junior Advisers:
More and more small or mid-size firms are considering bringing on a junior adviser to address this issue. In general, we are talking about the 20-to-30-year-olds who are just starting out in the business and are eager to bring added value to the firms they join. Junior advisers have much to offer, specifically in the following areas:

Innovation
In 2015, firms are looking for recruits who are well versed in technology and social media trends, new processes and systems, and individuals who can offer fresh thoughts and ideas for marketing and client interaction. Companies also value enthusiasm, energy and a high-level of motivation. A passion to succeed and a willingness to learn are attractive qualities of younger advisers.

Insight
A junior adviser is uniquely positioned to build relationships with the next generation of clients. The next gen adviser is likely to have a natural rapport with a younger group of prospective clients, wealth transfer opportunities and millennial investors, many of whom are accustomed to having access to information and data immediately and demand quick response times. The rise of more and more do-it-yourself investment options also means this generation of advisers will truly need to show their clients the value of their customer service and investment expertise.

Technology
Millennial advisers also tend to have a higher comfort level and aptitude for technology. They grew up with it and it is part of their way of life. Having tech-savvy individuals at your firm is important as compliance regulations are playing a much larger role in today’s industry as it continues to inspire new technologies, systems and documentation processes. Not staying current in the race to innovate dramatically increases a firm’s risk.

Succession
Bringing on a junior adviser is also an option for advisers looking for a succession plan. This type of exit strategy is best suited for those with the time to orchestrate and implement a long-term plan that includes a commitment to guiding the adviser, as well as providing structure, training, time and financial support. Business owners considering this option are typically looking for one of two types of junior advisers. The first is a professional with three to five years of experience in the advisory business, an understanding of the industry basics and the ability to hit the ground running. The second is a career changer or college graduate who can be trained in the industry and in the company’s culture from the ground up.

Today’s industry is different for advisers just starting out. Independently building a book of business and attracting and securing new clients are much different from days past. It’s not about cold calling anymore. The majority of today’s wealth is at the senior client level. This makes it imperative for a junior adviser to have a strong and committed mentor to provide the training needed to eventually serve the level of wealth like the senior advisers are already managing. When matched correctly, hiring a junior adviser can provide a lot of benefits for the adviser themselves and the firm.

Related Topics: NextGen, Topical Microsites